Sunday Post- Two New Setups

{+++} We should see more light volume action as we get closer to New Years Day. The market is a bit toppy, bullish sentiment is at hysterically bullish levels and we are overbought. Here are some thoughts I had over the weekend in case you missed it. These conditions don’t preclude one more bull rally, but it is time to count some chips,tighten stops and maybe take a little off the table. Trading smaller size is probably prudent too.

I have no interest in being short anything and we could indeed go higher. I have tightened up some stops on the P&L if you are following things there.

Being careful doesn’t mean to roll over and die so here are two setups I like for the week ahead.

RVBD – As you can see in the weekly chart below, RVBD broke out of a long downtrend (white line). The downtrend pretty much started back in July 2011, so the fact that the stock broke higher back in November is technically significant. The stock had a follow through week, and has now been consolidating for about six weeks.

It appears to be flagging bullishly on the weekly and I will look to get long at the 17.75 level.


SLXP has a nice pattern and is working off its acquisition of SNTS, another quality drug company. I will look to get long the 90.85 level.


I will do some predictions over the coming days (mostly for fun), but I will also make some serious calls on the macro front as it relates to countries with some stocks and/or ETF’s that will look excellent for 2014.

I would also love to hear your predictions as it relates to just about anything. Stocks, etf’s,  politics….whatever. Just email me.

See you in the trading room.

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